San Miguel Corp.’s banking unit Bank of Commerce (“BankCom”) launched its first local bond offering worth P3 billion.
BankCom said the Series A bonds with a tenor of two years and a fixed interest rate of 5.0263 percent per annum, would come from its P20 billion bond program.
Proceeds from the bond offering will be used to manage the bank’s net interest margin by matching long-term assets with long-term funding to reduce the BankCom’s interest rate risk as well as diversifying funding sources.
BankCom’s ended the first quarter with total assets of P206.38 billion, up 5.63 percent from P195.39 billion in the same period last year.
Loans and receivables, comprising bulk of the bank’s assets at 41 percent, amounted to P84.67 billion as of end of March, yielding a double-digit growth of 16.29 percent year on year.
ING Bank N.V., Manila Branch and Philippine Commercial Capital are the joint lead arrangers and joint bookrunners for this issue.